The CEO of Sheng Siong Group Ltd (SGX:OV8) is Hock Chee Lim. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Sheng Siong Group

How Does Hock Chee Lim's Compensation Compare With Similar Sized Companies?

According to our data, Sheng Siong Group Ltd has a market capitalization of S$1.7b, and paid its CEO total annual compensation worth S$3.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$369k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from S$1.4b to S$4.4b, and the median CEO total compensation was S$2.0m.

Thus we can conclude that Hock Chee Lim receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sheng Siong Group Ltd. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Sheng Siong Group has changed from year to year.

Is Sheng Siong Group Ltd Growing?

On average over the last three years, Sheng Siong Group Ltd has grown earnings per share (EPS) by 6.3% each year (using a line of best fit). Its revenue is up 10% over last year.

This revenue growth could really point to a brighter future. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.

Has Sheng Siong Group Ltd Been A Good Investment?

With a total shareholder return of 17% over three years, Sheng Siong Group Ltd shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared the total CEO remuneration paid by Sheng Siong Group Ltd, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.